Sppu aids engineering semister 4 mis unit 1

1. Management Information
System
(217530)
prof-Dumbre A.S

2. Unit I
An Overview of Management Information
System
• Syallbus :Management information system: Concept, MIS: Definition,
Role of MIS, Impact of MIS, MIS & the User, Management as a Control
System: The functions of Management, Managerial Roles, The Levels
of Management[R3]. MIS: A Support to the Management,
Management effectiveness and MIS, Organization as a System.
Decision Making, Information, Knowledge and Business intelligence,
Business intelligence for MIS.

3. What is Management?
• Planning, control, and administration of an organization.
• Management is generally hierarchical:
• Top managers handle planning;-CEO,MD-any organization
• Mid – career managers control;
• lower/bottom- And, junior managers administer.
What is Information?data—processing—information
• Processed data to support management functions
• Processing – record, summarize, store, and retrieve.
• Present in the required reporting format.
What is a System? (in the context of MIS)common goals
• An inputs – processing - output and feedback matrix.
• Supports the processing of data into information.

4. management information systems Diagram:

6. • Data vs. Information./what is information system:
• Data: Collection of facts ,figures is called data.Data: raw facts
• – Alphanumeric, image, audio, and video
Streams of raw facts representing events occurring in organizations or the
physical environment before they have been organized and arranged into a
form that people can understand and use.
• Information: The data which is used for useful purpose or decision
making is called information.
Data that have been shaped into a form that is meaningful and useful to
human beings.
● System:number of components items ,things working in a
coordinated manner in a network to achieve a common goal
is called system.

7. • What Is an Information System? An information system is
designed to collect, process, store and distribute information Integrated
components processing, storing and disseminating information in an
organisation.
• An information system can be defined technically as a set of interrelated
components that collect (or retrieve), process, store, and distribute
information to support decision making and control in an organization. In
addition to supporting decision making, coordination, and control,
information systems may also help managers and workers analyze
problems, visualize complex subjects, and create new products.What is an
Information System (IS)?
• A unified data and knowledge (soft) infrastructure.
• Collect/retrieve, process, store, and dispense information.
• Supports decision making and control.

8. MIS:
• Management Information System is a computer based information
system which is basically concerned with processing data into
information which is then communicated to the various
departments in an organization to support the operations, the
management and the decision making function in the organization.
• Management Information System (MIS) consists of following three
pillars: Management, Information, and System. These are
explained as following below.
• Management: art of getting things done through and with the
people of in formally organized groups. Managerial functions:
• (i) Planning (ii) Organizing (iii) Staffing (iv) Directing (v) Controlling
• Information: data that have a meaning with a context ,where data
is raw facts about an entity (entity is the object of interest).
• System: set of inter-related components with a clearly defined
boundary working together to achieve a common goal.

10. • MIS DIAGAM BASIC:
• Database----🡪management-----🡪information
• A management information system is a system for collecting ,storing ,and
disseminating data in the form of information that is required to carry out
management functions.
• Objectives/Goals of MIS:
• 1)Data Capturing: To capture contextual data or operational information
from a variety of internal and external sources to aid in decision making.
• 2)Data processing:At the strategic ,tactical, and working levels the
captured data is processed into information for planning organizing
,coordinating ,directing and regulating functionalities.
• 3) provide information for decision making-1st data collect -data
classify-grouping-graphical representation-management take decision
making
• 4)provide real time data for fast decision making.
• 5)provide better customer service.
• 6)its creates new jobs.

11. features/characteristics of MIS
1)management oriented-( support management
function):
2)integrated system-no. Of components works
together in a network.
3)related information to related manager.
4)no duplication of data.single database used
5)easy to implement change.
6)data transformation(from raw data to implement).

12. Need /importance of MIS
● To provide necessary information for smooth execution
of management functions.
● To provide necessary information used for decision
making.
● Cost reduction.
● Effective and efficient communication.

13. • Advantages of MIS:
• Improves quality of an organization or an information content
by providing relevant information for sound decision making.
• MIS change large amount of data into summarize form and
thereby avoid confusion which may an answer when an
information officer are flooded with detailed fact.
• MIS facilitates integration of specialized activities by keeping
each department aware of problem and requirements of
other departments.
• MIS serves as a link between managerial planning and
control. It improves the ability of management to evaluate
and improve performance.

14. Disadvantages:
• Too rigid and difficult to adapt.
• Resistance in sharing internal information between
departments can reduce the effectiveness.
• Hard to quantify benefit to justify implementation of MIS.
• Quality of output of an MIS is directly proportional to quality
of input and processes.

15. • Functions of Management :Roles:
• Management is the art of getting things done through and with
the people in formally organised groups..
• Managerial function: or steps in management:
1)Planning
2) Organising
3) Staffing
4)Directing
5) Controlling

16. ● Planning: Preparing a schedule of events that will happen in a project or
creating a blueprint of activities that will be done to complete the project.
● Organizing: Arranging everything needed for the successful completion
of the project and synchronizing the same.
● Staffing: Grouping of personnel in different teams and allocating them
tasks.
● Leading/Coordinating: Guiding team members towards a common goal
and facilitating communication between the teams.
● Controlling: Bringing everything under control and taking accountability.

17. Levels of Management:

19. Levels Of Management:
• Levels of Management in Management Information System (MIS):
Upper/Top Level Management, Middle Level Management, Lower-Level
Management./Bottom level management.
• 1) Upper/Top Level Management:
• Generally, top management involves doing strategic planning for the
organization, and the other two levels provide help in the form of
processed data. The following are the core functionalities of top
management in a company:
• To develop the organization's policies and goals.
• Organizing the enterprise's strategies and assigning good administrators
to departments.
• Ensuring proper communication between the organization and the
people.
• The enterprise's goals and wide strategies are defined by top
management.
• Top management issues guidelines for preparing department budgets,
policies, and schedules, among other things.
• It creates the company's business goals and policies.
• It appoints middle-level executives, such as departmental managers.
• It supervises and oversees the work of all agencies.
• It's also in charge of keeping in touch with the outside world.

20. • 2) Middle-Level Management:
• The middle level management is in charge of operational
work and its control, and also requires strategic
information to do so.
• The following are the core functionalities of middle level
management in a company:
• To carry out the organization's strategies in compliance
with top-level management's policies and directives.
• To plan the operations of the department.
• To serve as an example or source of encouragement for
junior managers to increase their productivity.
• They carry out the organization's plans in compliance
with top management's policies and directives.
• Middle level management makes preparations for the
organization's sub-units.

21. • 3) Lower-Level Management:
• The lower level is responsible for day-to-day operational
activity and its control and requires knowledge to function.
The following are the core functionalities of lower level
management in a company:
• Assigning roles and duties to operational activities.
• They ensure consistency and accountability to ensure
production quantity.
• They convey to the workers the firm's priorities and
objectives as set out by higher-level administrators, as well as
suggestions, guidelines, appeals, and information pertaining
to employee issues.
• They provide staff with training and guidance on a daily basis.
• They provide higher-level supervisors with periodic worker
reports.
• They assign roles and responsibilities to staff members.

22. Role of MIS:
1)Decision making.
2)Coordination
3)Identifying issues.
4)Performance Comparison.
5)Strategy Planning.

23. 1. Decision making:If any organization,decisions are made based
on relevant information collected from the MIS.
Management Information System (MIS) plays a significant role in
the decision-making process of any organization. In any
organization, a decision is made on the basis of relevant
information which can be retrieved from the MIS.
1. Coordination among the department
Management Information System satisfy multiple need of
an organization across the different functional department.
1. Finding out Problems
As we know that MIS provides relevant information about every
aspect of activities. Hence, if any mistake is made by the
management then MIS, information will help in finding out the
solution to that problem.

24. 4.Comparison of Business Performance:
MIS store all past data and information in its Database. That why
the management information system is very useful to compare
business organization performance.
5.Strategies for an Organization/planning:
Today each business is running in a competitive market. An MIS
supports the organization to evolve appropriate strategies for the
business to assent in a competitive environment.

25. Managerial Roles:

31. MIS in organization in a system:
Organizational System:
1. Structure:
2. Goals:
3. Participants:
4. Technology:

32. • Why one should study MIS: It may be a student aspiring to
become a manager in some organisation, an entrepreneur or a
professional. Information system and information technology
is a vital component of any successful business and is regarded
as a major functional area like any other functional area of a
business organization like marketing, finance, production,
human resources (HR) etc. Information systems play following
3 vital roles for a business organisation:
• Supports the business processes and operations of an
organisation.
• Support of decision making by employees and managers of an
organisation.
• Support the strategies of an organisation for competitive
advantage.

33. Functions of management control system
• 1)Operational goals:
• 2)Operational policies and strategies:
• 3)Organizational processes:
• 4)performance comparisons:
• 5)Deviation Rectification:

34. Business intelligence for MIS:
● BI(Business Intelligence) is a set of processes, architectures,
and technologies that convert raw data into meaningful
information that drives profitable business actions. It is a suite
of software and services to transform data into actionable
intelligence and knowledge.
● The term 'Business Intelligence' has evolved from the
decision support systems and gained strength with the
technology and applications like data warehouses, Executive
Information Systems and Online Analytical Processing
(OLAP).
● Business Intelligence System is basically a system used for
finding patterns from existing data from operations.

35. Business intelligence:
● BI(Business Intelligence) is a set of processes, architectures,
and technologies that convert raw data into meaningful
information information into knowledge and knowledge
into plans that guide oganization.
● Technologies for gathering storinganaling and providing
access to data to help enterprise users mae better business
decision.
● It is a suite of application software and services to transform
data into actionable intelligence and knowledge.
● Business intelligence represent a wide area of application
and technologies for collecting,storing and anayzing and
providing access to information for improving business
process modelling quality
● BI technology can be used by Data analyst, IT people,
business users and head of the company.
● Sales ,marketing,finance and operations departments use
business intelligence.

36. Characteristics of BIS
● Single point of access to information(all data available in one place)
● Timely answers to business questions.
● Using BI in all department of an organization.
● It is created by procuring data and information for use in decision-
making.
● It is a combination of skills, processes, technologies, applications and
practices.
● It contains background data along with the reporting tools.
● It is an extension of Executive Support System or Executive
Information System.
● It collects, integrates, stores, analyzes, and provides access to
business information.

37. Key stages of BI
1)data sourcing-
2)data analysis-
3)situation awareness-
4) risk analysis-
5)decision support-

38. BI systems have four main parts-
1)Data warehouse-store company information from a variety of sources in a
centralized and accessible location.
Data warehouse refers to the process of compiling and organizing data into
one common database, whereas data mining refers to the process of
extracting useful data from the databases. The data mining process depends
on the data compiled in the data warehousing phase to recognize meaningful
patterns.
2)Business analytics or data management tools-( data analysis used this
tool)mine and analyze data in the data warehouse.
3)Business performance management(BPM)-tools monitor and analze
progress towards business goals.
4)A user interface-provides quick access the information

39. Advantages of Business Intelligence:
1. Fast analysis-
2.incresed organizational efficiency-.
3. To improve visibility
BI also helps to improve the visibility of these processes and
make it possible to identify any areas which need attention.
4. Fix Accountability
BI system assigns accountability in the organization as there
must be someone who should own accountability and ownership
for the organization’s performance against its set goals.
5. It allows for easy analytics.
BI software has democratized its usage, allowing even
nontechnical or non-analysts users to collect and process data
quickly. This also allows putting the power of analytics from the
hand’s many people.

40. BI System Disadvantages
1. Cost:
Business intelligence can prove costly for small as well as for medium-sized
enterprises. The use of such type of system may be expensive for routine
business transactions.
2. Complexity:
Another drawback of BI is its complexity in implementation of datawarehouse. It
can be so complex that it can make business techniques rigid to deal with.
3. Limited use
Like all improved technologies, BI was first established keeping in
consideration the buying competence of rich firms. Therefore, BI system is yet
not affordable for many small and medium size companies.
4. Time Consuming Implementation
It takes almost one and half year for data warehousing system to be completely
implemented. Therefore, it is a time-consuming process.

41. Four types of BI users
Following given are the four key players who are used Business Intelligence
System:
1. The Professional Data Analyst:The data analyst is a statistician who always
needs to drill deep down into data. BI system helps them to get fresh insights to
develop unique business strategies.
2. The IT users:The IT user also plays a dominant role in maintaining the BI
infrastructure.
3. The head of the company:CEO or CXO can increase the profit of their business
by improving operational efficiency in their business.
4. The Business Users”:--Business intelligence users can be found from across
the organization. There are mainly two types of business users
1. Casual business intelligence user
2. The power user.:The difference between both of them is that a power user has
the capability of working with complex data sets, while the casual user need
will make him use dashboards to evaluate predefined sets of data.

42. Business Intelligence: Introduction, Benefits of BI
● Business intelligence may be defined as a set of mathematical models and
analysis methodologies that exploit the available data to generate information
and knowledge useful for complex decision-making processes.
● Business Intelligence (BI) refers to skills, processes, technologies, applications
and practices used to support decision making.
● Systems that provide directed background data and reporting tools to support
and improve the decision-making process

43. Data, Information & Knowledge
● Data: Birth-Date
● Information: Age
● Knowledge: Youth
are more than
Senior Citizens
Fig. Benefits of a business intelligence system

44. Approaches of BIS:
For most companies, it is not possible to implement a proactive business
intelligence system at one go. The following techniques and methodologies could
be taken as approaches to BIS −
● Improving reporting and analytical capabilities
● Using scorecards and dashboards
● Enterprise Reporting
● Online Analytical Processing (OLAP) Analysis
● Advanced and Predictive Analysis
● Alerts and Proactive Notification
● Automated generation of reports with user subscriptions and "alerts" to
problems and/or opportunities.

45. Business intelligence implementation steps:
1.Develop a business intelligence implementation strategy.
2. Appoint the team responsible for BI implementation.
3. Define KPIs to be subject to BI.
4. Find a competent software vendor.
5. Select the right BI tools.
6. Take thought for infrastructure.
7. Prepare the data
8. Perform data migration (optional)
9. Initiate a feedback loop
10. Start small
11. Implement BI on a larger scale

46. • Decision Making:The Decision Support System is always helpful to
management people to take decisions and finds the key business insights
from available information systems.
Definition:
1) According to P. F. Drucker – “Whatever a manager does he does
through making decisions.”
2)A Choice made between alternative course of actions in a situation of
uncertainty is known as decision making.
Characteristics:
1)it is process of choosing an action
2)it is a human process
3)it always have a purpose
4)dynamic function(situation wise chance decision)

47. Decision Support System: Definition
DSS is an interactive
computer system helping
decision makers to combine
data and models to solve
Semi-structured and
unstructured problems

49. Decision Support System

50. Development of a decision support
system
● Planning: Why do we wish to develop a DSS?
● Analysis: What should the DSS accomplish, and who will use
it;when and how?
● Design: How will the DSS work?
● Implementation:
Change management
Rapid prototype development
Agile development technique
Extreme programming technique

51. The dotted arrow in the opposite
direction indicate revisions of one
or more phases that might
become necessary during the
development
Logical Flow of the activities
is shown by the solid arrow
Fig. Phases in the development of a decision support system

52. Business Pressures Faced By
Organizatios:
● Market-
● Technology-
● Societal pressures-
1)Market Pressures:
a) Globalization
b)Powerful customers
c)Changing nature of workforce
2)Technology Pressures:
a)Technological innovation
b)information overload

53. ● Societal pressures-/political/legal :
a)Social responsibilities:
b)compliance with government regulations: